Ponzi: Treasury Issues $1T in New Debt in 8 Weeks—To Pay Old Debt

[Chef Ramsay]

 

The Daily Treasury Statement that was released Wednesday afternoon as Americans were preparing to celebrate Thanksgiving revealed that the U.S. Treasury has been forced to issue $1,040,965,000,000 in new debt since fiscal 2015 started just eight weeks ago in order to raise the money to pay off Treasury securities that were maturing and to cover new deficit spending by the government.

During those eight weeks, Treasury took in $341,591,000,000 in revenues. That was a record for the period between Oct. 1 and Nov. 25. But that record $341,591,000,000 in revenues was not enough to finance ongoing government spending let alone pay off old debt that matured.

...

The only way the Treasury could handle the $942,103,000,000 in old debt that matured during the period plus finance the new deficit spending the government engaged in was to roll over the old debt into new debt and issue enough additional new debt to cover the new deficit spending.

This mode of financing the federal government resembles what the Securities and Exchange Commission calls a Ponzi scheme. “A Ponzi scheme," says the Securities and Exchange Commission, “is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors,” says the Securities and Exchange Commission.

“With little or no legitimate earnings, the schemes require a consistent flow of money from new investors to continue,” explains the SEC. “Ponzi schemes tend to collapse when it becomes difficult to recruit new investors or when a large number of investors ask to cash out.”

$17,937,160,000,000.

Of this, $5,080,104,000,000 was what the Treasury calls “intragovernmental” debt, which is money the Treasury has borrowed and spent out of trust funds theoretically set aside for other purposes—such as the Social Security Trust Fund.

Video of Treasury Sec Lew telling Congress of why they have to constantly issue new debt and more of the insane monetary numbers...http://cnsnews.com/mrctv-blog/terence-p-jeffrey/ponzi-treasury-issues-1t-new-debt-8-weeks-pay-old-debt

Bullish as fuck!

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[BitMos]

Bullish as fuck!

BTC feeding on insanity. But first, time to wipe out the enemies of the Republic... then the downsizing of the USMIC and restoring of sound money and others peaceful activities is possible. A clear leap of faith in the claws of the Empire, but is there really another realistic efficient answer others than the Constitution and Bill of rights of the United States of America to reach the moon and beyond? Peace with the Empire, aka PAX AMERICANA or war with the EMPIRE, and welcome to the realities of the Darkest side. It would be sad to lose the diversity of the opponents as once they are peaceful they are quite fun. So any dream of independence or autonomy conceived as a risk to the PAX AMERICANA or the values embedded in it's constitution and bills of rights, materialized by the flag of it, will clearly not contribute to a better - peacefuller - harmoniouser - lovinger world but would contribute to the generation of innumerable battlefields. PEACE HAS A COST. The Empire knows it and is ready to engage you in all battlefields, and to lose some battles to win the war. AT ALL COST.

WE THE PEOPLE (AND AIs )...

[Lethn]

Holy shit! Is this real and recent? We are so fucked! Good think I've been preparing for this kind of move! Next year guys we're going to have a crash, count on it!

[Spendulus]

Holy shit! Is this real and recent? We are so fucked! Good think I've been preparing for this kind of move! Next year guys we're going to have a crash, count on it!

Be at peace.  Quantitative Easing is over. 

We are on to either a new word, or no word. 

QE was a big story, but we've all moved past that now.    You see, we're on to Officer Wilson now.

I'm certain that the crash will only come once the Repubs take over.  That'll be a story.

[Vod]

Holy shit! Is this real and recent? We are so fucked! Good think I've been preparing for this kind of move! Next year guys we're going to have a crash, count on it!

The crash has already started.  Look at the price of oil.

[Lethn]

I'm certain that the crash will only come once the Repubs take over.  That'll be a story.

That's something I've been predicting as well, it's a tactic used by establishment parties to make opposition look bad, get in power, spend the crap out of the budget, print lots of money and then let it all crash when the new government gets formed, the sad thing is it's probably going to work and everyone will blame the opposition for this instead of realising both of them have been royally fucking with the currency supply.

The crash has already started.  Look at the price of oil.

I was too busy looking at the massively inflating S&P, Nikkei, DOW and NASDAQ myself

[jaysabi]

Holy shit! Is this real and recent? We are so fucked! Good think I've been preparing for this kind of move! Next year guys we're going to have a crash, count on it!

The crash has already started.  Look at the price of oil.

The price of oil is reflective of the Saudis trying to crush the shale producers in the US since it's more expensive to produce. They've let the price fall to the point where shale production cost is higher than the price of oil. When they've done their damage, the price will recover, like it always does.

[Lethn]

Holy shit! Is this real and recent? We are so fucked! Good think I've been preparing for this kind of move! Next year guys we're going to have a crash, count on it!

The crash has already started.  Look at the price of oil.

The price of oil is reflective of the Saudis trying to crush the shale producers in the US since it's more expensive to produce. They've let the price fall to the point where shale production cost is higher than the price of oil. When they've done their damage, the price will recover, like it always does.

To be honest, that's true, oil isn't really an indicator of hyperinflation, now gold on the other hand I have been keeping an eye on that's crawling it's way up to the $1200 mark and I vaguely remember it being at these levels before the crash, we just need it to hit $2000 and then It will be there.

[jaysabi]

Holy shit! Is this real and recent? We are so fucked! Good think I've been preparing for this kind of move! Next year guys we're going to have a crash, count on it!

The crash has already started.  Look at the price of oil.

The price of oil is reflective of the Saudis trying to crush the shale producers in the US since it's more expensive to produce. They've let the price fall to the point where shale production cost is higher than the price of oil. When they've done their damage, the price will recover, like it always does.

To be honest, that's true, oil isn't really an indicator of hyperinflation, now gold on the other hand I have been keeping an eye on that's crawling it's way up to the $1200 mark and I vaguely remember it being at these levels before the crash, we just need it to hit $2000 and then It will be there.

Wasn't gold in the 1600-1700 range recently? (By recently, I mean post-recession). It hardly seems to be an indicator of inflation, let alone hyperinflation.

[jaysabi]

Holy shit! Is this real and recent? We are so fucked! Good think I've been preparing for this kind of move! Next year guys we're going to have a crash, count on it!

The crash has already started.  Look at the price of oil.

The price of oil is reflective of the Saudis trying to crush the shale producers in the US since it's more expensive to produce. They've let the price fall to the point where shale production cost is higher than the price of oil. When they've done their damage, the price will recover, like it always does.

To be honest, that's true, oil isn't really an indicator of hyperinflation, now gold on the other hand I have been keeping an eye on that's crawling it's way up to the $1200 mark and I vaguely remember it being at these levels before the crash, we just need it to hit $2000 and then It will be there.

Wasn't gold in the 1600-1700 range recently? (By recently, I mean post-recession). It hardly seems to be an indicator of inflation, let alone hyperinflation.

To answer my own question, it was around 1600 in Feb 2013.

[Lethn]

It's because gold as well as silver is not only seen as a safe haven from inflation it was what was used as a currency before the federal reserve came along, so what that means is that if the price goes up then that's usually an indicator of how much currency the central banks are printing, like with Zimbabwe where you have billion dollar notes and stuff this is why I'm predicting if Bitcoin hits $10000 like some people think it's going to be due to hyperinflation rather than the currency being extremely valuable.

If you also compare the prices between Bitcoin and Gold directly, you'll see that actually it looks incredibly stable, it's only the dollar price that's rising massively, hell, even though the pound and euro is going to be severely messed with soon they're still doing better right now but obviously that will change soon as they all start panicking.

[jaysabi]

It's because gold as well as silver is not only seen as a safe haven from inflation it was what was used as a currency before the federal reserve came along, so what that means is that if the price goes up then that's usually an indicator of how much currency the central banks are printing, like with Zimbabwe where you have billion dollar notes and stuff this is why I'm predicting if Bitcoin hits $10000 like some people think it's going to be due to hyperinflation rather than the currency being extremely valuable.

If you also compare the prices between Bitcoin and Gold directly, you'll see that actually it looks incredibly stable, it's only the dollar price that's rising massively, hell, even though the pound and euro is going to be severely messed with soon they're still doing better right now but obviously that will change soon as they all start panicking.

I understand the argument and gold's historical role as a hedge against inflation, but it's been trading very high over its inflation-adjusted historical value for quite awhile. The price spikes aren't indicative of hyperinflation, but people piling into a bubble, constantly expecting hyperinflation that never materializes. I believe 1980 is the inflation-adjusted historical high point, what would be about $2400 in 2014 dollars. Gold is nowhere near reaching that again, and it is still trading above its historical average value. I don't view price rises now evidence of a failing monetary system any more than they've been in the last 30 years, which is to say not at all.

[Lethn]

Hyperinflation is happening right now, look at the stock markets, prices are how you measure inflation there isn't really any other way, the stock markets have been artificially pumped by the central banks to stay at the heights they are, If that isn't enough you should be looking at charts of the amount of currency currently in circulation.

http://ycharts.com/indicators/us_currency_in_circulation

In the alternate realities other people live in there is only no hyperinflation if they choose to ignore the data or if they haven't seen the data.

[jaysabi]

Hyperinflation is happening right now, look at the stock markets, prices are how you measure inflation there isn't really any other way, the stock markets have been artificially pumped by the central banks to stay at the heights they are, If that isn't enough you should be looking at charts of the amount of currency currently in circulation.

http://ycharts.com/indicators/us_currency_in_circulation

In the alternate realities other people live in there is only no hyperinflation if they choose to ignore the data or if they haven't seen the data.

Yes, prices are how you measure inflation, and there are no prices undergoing hyperinflation for consumers or investors. The S&P is trading on the high side of historical PE, but within the normal range. The stock markets are up reflecting the profitability of the securities underlying the companies that trade there. Because they're still trading in the normal historical range, you can't even say it's been very inflationary, let alone HYPERinflationary.

You do understand what hyperinflation is, right? Because I don't see any instances or data that would warrant the use of that word. The chart you posted shows a 7% annual rise in the currency in circulation, and increasing at a steady clip. Hyperinflation would be a much greater increase, and a rapidly accelerating increase. By contrast, Germany in 1920 had inflation of 50% per month, and by 1923 it was 29,000% per month. The largest monthly inflationary rate was hit by Hungary in the 1940's at over 40 quadrillion percent per month. I've never seen anyone refer to an inflationary rate below 40% per month as hyperinflation, and you're talking about a 7% annual rise? For me, that's nowhere close to hyperinflation. If month over month it starts increasing from there at ever faster rates, you could maybe make the case that it is beginning, but the data doesn't support that conclusion right now. It seems a hyperbolic.

[Lethn]

Okay, let me put it this way, do you know about reserve ratios? Before the dollar used to be backed by gold but now we don't even know where that gold is and countries are demanding it back, that means that all the paper money being printed is going to become worthless, not only that we don't actually genuinely know how much tonnage of gold the federal reserve and the U.S government has but I can tell you for certain the paper to gold reserve ratio is not 1:1.

That is what hyperinflation is and that is the problems we're having with our economies, we're getting it here in the UK too, Gordon Brown went and sold off 40% of our gold reserves so that will have meant an instant devaluation of the pound and as for the prices being on the high side with the stock markets, you're forgetting how high things went in 2008 - 2009 when everything came crashing down.

[BitMos]

Anything over 0% of money supply increase whose attribution is more than dubious is already hyperinflammatory to me . You having what ever reasons doesn't justify me having to endure a reduction of my purchasing power even if it's fit some mean average . I am not an average , but an Individual . I don't want to have to adjust my financial planning to the will of People not caring to my need but what ever they see fit. Thusfar, I am so happy to have fund the ultimate actual edge against those practices of another age . The more you study those past practices of enslavement of the free will of mankind the higher your risk of being contaminated by such mind sets . Let's try once and for all with this BTCthing and see what happens . It can't be worst than the actual solutions, in any regards... unless you are one of those that will have to be restructured... the energy used in those big skyscrapers to host redundant biological nodes will need to be better used or it will be used to hash .  Bitcoin is pure accounting, business is accounting, bitcoin meet business they make children , open-bazar is born, open sourcing, p2pering, digital materialization (3dprinting)... ahaha ( ). you add selfdriving transportation, flush, rinse and repeat... drones and co... flash, rinse, burn the hashes, repeat... anyway the algos will tell their choices, and they will be followed... the paths . A little warning to the lobbyhall type of people whose egos could express a will to stop this train in march by their actions or politics... be aware it's on an exponential path, backed by struggling to be exponential forces... just to say it will be an impact to remember by it's insignificance . spoof, opposition splashed  . To image it, a fast and furious maglev train vs a tiger mosquito . insignificant, don't become the mosquito please . its juice dries on the sun and is hard to remove .

[AllTheBitz]

Its happening!

[Balthazar]

Hyperinflation

Hyperinflation looks like this:





http://www.fox-notes.ru/ross_bon/notiz_T_2014_10_02_B.htm



http://www.nostate.com/2973/five-hundred-billion-dinars-do-you-have-change-for-this/comment-page-1/



http://www.myntogseddel.no/Sedler-Verden/Utenlandske-sedler/Zimbabwe/Reserve-bank-of-Zimbabwe-100-Trillion-utgitt-sent-2008-Highest-2008-UNC-100-Trillion.html

[Lethn]

Yeah, maybe he just needed something more visual to understand how it happens

[jaysabi]

Okay, let me put it this way, do you know about reserve ratios? Before the dollar used to be backed by gold but now we don't even know where that gold is and countries are demanding it back, that means that all the paper money being printed is going to become worthless, not only that we don't actually genuinely know how much tonnage of gold the federal reserve and the U.S government has but I can tell you for certain the paper to gold reserve ratio is not 1:1.

That is what hyperinflation is and that is the problems we're having with our economies, we're getting it here in the UK too, Gordon Brown went and sold off 40% of our gold reserves so that will have meant an instant devaluation of the pound and as for the prices being on the high side with the stock markets, you're forgetting how high things went in 2008 - 2009 when everything came crashing down.

Yes, I take the point about reserve ratios well, especially how fractional reserve banking increases the money supply (if that's the point you're making). But you still don't use the word "hyperinflation" to describe ordinary inflation. For hyperinflation to exist, prices have to hyperinflate, and they're just not. They weren't in 2008 and they're not now. All the theory about what brings about hyperinflation is rather worthless in the face of what actually happens in the real world, and there is no hyperinflation in the equity markets, the money supply, or consumer prices.

Not to say I'm defending a loose monetary policy. I'm just objecting to characterizing something as hyperinflation that clearly isn't.